Wal-Mart says it will pull out of D.C. plans should city mandate ‘living wage’

[ErikJ]

Source: WaPo

Wal-Mart says it will pull out of D.C. plans should city mandate ‘living wage’

The world’s largest retailer delivered an ultimatum to District lawmakers Tuesday, telling them less than 24 hours before a decisive vote that at least three planned Wal-Marts will not open in the city should a super-minimum-wage proposal become law.
A team of Wal-Mart officials and lobbyists, including a high-level executive from the mega-retailer’s Arkansas headquarters, walked the halls of the John A. Wilson Building on Tuesday afternoon, delivering the news to D.C. Council members.

The company’s hardball tactics come out of a well-worn playbook that involves successfully using Wal-Mart’s leverage in the form of jobs and low-priced goods to fend off legislation and regulation that could cut into its profits and set precedent in other potential markets. In the Wilson Building, elected officials have found their reliable liberal, pro-union political sentiments in conflict with their desire to bring amenities to underserved neighborhoods.

Mayor Vincent C. Gray (D) called Wal-Mart’s move “immensely discouraging,” indicating that he may consider vetoing the bill while pondering whether to seek reelection.

The D.C. Council bill would require retailers with corporate sales of $1 billion or more and operating in spaces 75,000 square feet or larger to pay their employees no less than $12.50 an hour. The city’s minimum wage is $8.25.

....................more http://www.washingtonpost.com/local/dc-politics/wal-mart-says-it-will-pull-out-of-dc-plans-should-city-mandate-living-wage/2013/07/09/4fa7e710-e8d0-11e2-a301-ea5a8116d211_story.html

Read more: http://www.washingtonpost.com/local/dc-politics/wal-mart-says-it-will-pull-out-of-dc-plans-should-city-mandate-living-wage/2013/07/09/4fa7e710-e8d0-11e2-a301-ea5a8116d211_story.html

[Just Saying]

1. I love that idea!

Good riddance to bad rubbish!

Gee what will we do without below poverty level jobs and shitty Chinese products?

[Scuba]

46. +1

[ErikJ]

2. Wal-Mart WaPo op-ed: The D.C. Council has forced our hand

Wal-Mart: The D.C. Council has forced our hand

By Alex Barron, Tuesday, July 9, 12:13 PM

Alex Barron is a regional general manager for Wal-Mart U.S. and is responsible for about 90 stores and 30,000 associates in the D.C. area, including all stores planned for Washington.

For almost three years, Wal-Mart has worked on a plan to bring new stores to Washington, and we are close to opening our first location in the city. Unfortunately, the District may soon adopt legislation that discriminates against business and threatens to undo all that we have accomplished together.

In November 2010, Wal-Mart announced a plan to bring more jobs, shopping options and fresh food choices to Washington residents. Just 12 months later, we increased our investment — from four stores to six and from 1,200 jobs to 1,800 — in an effort to expand access and opportunity to more underserved communities in the city.

During this time, we also engaged in an open dialogue with residents, stakeholders, critics and elected officials. Our goal was to listen, share information about our company, answer questions about our plans and address any concerns.

Residents told us that they wanted good jobs and more affordable grocery options in their neighborhood. We also heard about issues such as local hiring, competitive wages, an inclusive construction process, local products and support for community nonprofits.

................clip

http://www.washingtonpost.com/opinions/wal-mart-in-wage-law-vote-the-dc-council-has-forced-our-hand/2013/07/09/dee907d4-e8c5-11e2-8f22-de4bd2a2bd39_story.html?tid=pm_opinions_pop

[demosincebirth]

28. Ha,a living wage trumps China-Mart!

[jmowreader]

42. I wonder if Alex knows the difference between good jobs and the ones his company offers

[kimmylavin]

57. Thank you!

I'm reading that, thinking, "What in the world is he talking about???"

[wordpix]

54. living in DC is expensive - avrg. list price for homes is $477K - wages should reflect that

http://www.trulia.com/real_estate/Washington-District_Of_Columbia/

Even the low-income parts of the District are changing, gentrifying and becoming more expensive. A friend bought a house in one of these areas for $65K but it was a wreck. He had to spend $100K just to make the house liveable, and that was just for the basics, nothing beyond that.

Note in this link Naylor Gardens in SE DC, a "steal" at $124K for avrg. coop price but this represents a 65% increase compared to last year. This area has some nice parts but it is also crime ridden with gang elements and a lot of school truancy at the high school.

Point is, you need a lot of money to live in DC, whether you're buying or renting, and asking $12.50/hr. for wages will barely get you a room rental, much less an apt. in a decent neighborhood.

[7962]

103. Yet Costco seems to be doing fine paying much better

Maybe WM could learn a few things from THEM.

[lastlib]

75. No, Wally--the people said they wanted GOOD jobs!

Not your half-time, half-slave wages with no benefits.

[atreides1]

77. I can understand why.

The D.C. Council is trying to get away from having to subsidize Wal Mart by providing assistance to those who will be employed at these stores.

[SunSeeker]

115. Fucking disgusting liar.

 

Just 12 months later, we increased our investment — from four stores to six and from 1,200 jobs to 1,800 — in an effort to expand access and opportunity to more underserved communities in the city. 

What a steaming pile of shit. Walmart opens stores out of the goodness of their heart to help communities, dontcha know?

If Walmart wanted to "expand opportunity" they'd pay a living wage and benefits, not exploit our country's poor.

[MrModerate]

3. Once again, Walmart wants the public purse to pay . . .

Their employees to stay alive, because Walmart doesn't care to do so.

Walmart can go to hell.

[ErikJ]

5. The richest family in the world

wants us Americans to pay for their employees' groceries.

[littlewolf]

9. I do not think the Walton family owns the company anymore.

there are 2 members of the family on the BoD ... but it is far from privately owned ... heck my 401k and my IRA are invested in walmart.

[ErikJ]

13. They all make billions in dividends from Walmart stock every year.

I believe thay own a controlling major share of Walmart stock still.

[Hestia]

79. According to state newspaper on the shareholders meeting this year,

Walton family holds 54% of the stock, and has the final say in any board decisions in spite of what other board members vote. So yeah, everything Walmart sits at the feet of the Walton family. First they screw Arkansas, legislature gives into them, then they go and screw the rest of America. Don't do it DC, stand firm on living wages, don't make the same mistakes we did.

[littlewolf]

99. thank you I didnot know that about the walton family eom

[Brigid]

82. We have our winner.

Too bad it's so true.

[MotherPetrie]

6. +1

[Doc Holliday]

114. Hey, a new slogan!

"Go to Hell.....shop at Walmart!"

[tomm2thumbs]

4. I believe most would agree the country was better off before Walmart

Maybe it's time they did the right thing and just roll up the carpet on their whole operation... for the good of the country. Their operations are a blight on America.

[kelliekat44]

60. Never thought of it this way, but your are correct.nt

[frylock]

7. do not cave to these shitters

[Iliyah]

8. And pay for their employee's health care as well

MEDICAID (Medi-Cal).

[CountAllVotes]

12. This keeps the poor living in poverty

& recommend!!

[cheapdate]

10. Tell them to get lost.

[Travis_0004]

11. Why not just make the minium wage 12.50 for everybody.

I don't get the point of singling out a few corporations, and letting others slide.

[CountAllVotes]

17. Wal-Mart is like a cancer

We fought them for many years in an already impoverished economy.

Finally, things got bad enough that they wormed their way in.

I will not buy anything from them ever, no matter how desperate I may become.

Wal-Mart is evil. They encourage poverty at YOUR expense.

We must boycott and power is most certainly in the hands of the people for a change!

YES WE CAN EH?

[Half-Century Man]

76. Not a cancer

its an SDT. more like syphilis really.
I posted this yesterday and I think it makes my point.



Finally, Wal-mart is the retail version of syphilis. Your town contracts wal-mart, slowly goes commercially insane, impotent, and sterile. The body of your workforce becomes weaker and weaker, making the ravages of wal-mart all the more severe. Then you pass it on to the next town. And each infected town in your states community of towns, drains resources from the parent community.

We have needed the protective legislation equivalent of a big penicillin shot in the ass for a long time.

[CountAllVotes]

96. Boy, you sure nailed it!

Couldn't agree more!

MAY THE FORCE BE WITH YOU!

[hughee99]

67. I agree.

I'm not sure why a company's global revenue or floor space should be a deciding factor in it's employees making a "living wage".

[KamaAina]

81. They are.

Sprawl-Mart is singling themselves out by whining about it, like Papa John's did about Obamacare.

[Travis_0004]

88. No they are not.

This law only applies to businesses who make over a certain amount, and have more than 75,000 sq feet.

If they want to raise the minimum wage, it should apply to all businesses, not just a few.

[KamaAina]

89. No, they aren't.

Missed that. I thought DC was being a little nervy going for a $12.50 minimum wage when even SF has only $10.55.

And you're probably right. But Sprawl-Mart should just go to court rather than throw a hissy fit. Either that, or just incorporate "Walton Capitol Holdings" in the Cayman Islands.

This might, however, be an intriguing way of leveling the playing field between David and Goliath Drawback: Workers would presumably flock from mom-and-pops to big-box stores paying 50% more.\.

[MADem]

101. Because CONGRESS runs DC--they make those decisions, and they won't do it, the bastards.

Most people don't realize that the power of the City Council is VERY limited--when it comes to major spending decisions, Congress holds the purse strings.

"Home rule" is only through the grace and favour of the Congress....

Article One, Section Eight of the United States Constitution grants the U.S. Congress "exclusive jurisdiction" over the city. The District did not have an elected local government until the passage of the 1973 Home Rule Act. The Act devolved certain Congressional powers to an elected mayor, currently Vincent C. Gray, and the thirteen-member Council of the District of Columbia. However, Congress retains the right to review and overturn laws created by the council and intervene in local affairs.[159]

http://en.wikipedia.org/wiki/Washington,_D.C.#Government

[cstanleytech]

14. Dont go after them with higher wages, go after them with higher corporate taxes that

is based on the gap between pay from the lowest earner in a store to the CEO of the company.
The bigger the gap the larger the % walmart has to pay.

[ErikJ]

15. How about just a tax to pay for their employees health care and food?

[YOHABLO]

93. 1st we have to have a Congress that will enact such legislation .. I won't hold my breath !!

We have to get rid of Citizens United .. and install stringent campaign finance reform .. seriously folks. We can sit here and say we need this and that, but without representation that will take action .. and a president who wants to hold hands with the Repugs and sing Kumbayah, nothing will ever happen. Hell yeah we need a federally mandated minimum wage .. but when you have entities like the Kochs saying things like ''a lower than minimum wage is good for the poor'' we don't stand a chance. It's time to purge these corporatist and take the country back .. Love to see Walmart turned into roller skating rinks.

[heaven05]

16. Oh

didn't you hear, the job market with a livable wage is looking up according to BLOOMBERG and the puppets who believe their corporate/media puppet masters.

[tinrobot]

18. A living wage... but only from corporations making more than $1 Billion?

The D.C. Council bill would require retailers with corporate sales of $1 billion or more and operating in spaces 75,000 square feet or larger to pay their employees no less than $12.50 an hour. The city’s minimum wage is $8.25.

As much as I'd like to see Wal-Mart driven out of DC, how is this fair? The minimum wage should be $12.50 for all businesses, regardless of income/size.

[brett_jv]

24. I guess the idea is to establish the precedent ...

With the companies that are actually able to PAY (in this case VERY easily).

Then, over time, optimally, you lower the requirements to include smaller stores and companies, and hence, more workers.

I mean, sure, it'd be great if the US Congress would just raise the minimum wage dramatically across the board. But with the Rethugs in charge ... it ain't gonna happen. At least this establishes a precedent that can be leveraged in the future, perhaps even by other municipalities.

It's baby steps, I suppose you might say. It's 'better than nothing'.

Although, admittedly ... a tad unfair for workers who DON'T (or won't) work at Walmart or similar company. But what are ya gonna do? At least SOME people will be getting paid a living wage.

[Chef Eric]

47. I think it's fair.

If individuals who earn more can be subjected to higher tax rates, then I see no reason why businesses that earn more shouldn't be required to pay a higher minimum wage.

[tinrobot]

55. But the square footage requirement essentially makes it Wal Mart only

McDonald's makes a lot more than a billion, so does Starbucks, but because they have smaller stores, they are exempt.

I'm all for a higher minimum wage - for all, not just Wal Mart employees. I think all of these companies should pay more.

[Chan790]

70. Absolutely on McDonalds.

Factoring in tip income, an average Starbucks store-partner nationally with 2 years of experience makes ~$12.50/hr. already, even if they're still in an entry-level barista position. I hated working for Starbucks for a number of reasons and will rarely say anything nice about them...pay was never one of those reasons.

[sweetapogee]

50. before they can be driven out...

they have to be allowed in, which as of this day they are not (in). Not that I care to pick nits or do major battle over this issue as it is easy to simply avoid shopping in stores that we don't like, but this small detail makes us look uninformed. Don't mean to offend anyone as I understand what you are trying to say!

[Triana]

19. I think District lawmakers should tell them to go to Hell

It's about time someone in gov't did, instead of kissing their ass.

[L0oniX]

29. ...and do without the campaign money? Silly ...it's congress. They don't work for us.

[limpyhobbler]

20. The city should buy up those 3 properties and open its own public-option department stores there.

Then they can pay something decent, and run the stores at cost, as a non-profit.

Also fuck Walmart.

[handmade34]

62. +1

employee owned cooperatives!!

[Chan790]

71. What gets lost here...and I live here...

is that the city-council and mayor's office are both strongly pro-gentrification. They actively work for a city that is devoid of a working-class to be the playground of the upwardly-mobile white-collar workforce.

This is as much about further driving poor people out of the city-proper and into SE (DC doesn't give a f**k what happens in Ward-8, it's cut off from the rest of the city by the Anacostia River. It's ghettoized by-design.) and PG County. (making them Maryland's problem) Walmart didn't just want to open stores, they targeted to open stores in up-and-coming neighborhoods like the 16th st. corridor and GA Ave. corridor where the city wants to restrict business to upscale retailers and boutiques to appeal to the population they want to attract and discourage the population they want to drive away.

[SheilaT]

21. A living wage should apply to all employees. Period.

Everyone deserves to be able to survive on minimum wage.

For what it's worth, I'm pretty sure $12.50 would be the highest minimum in the country.

[silvershadow]

22. Shows a lot about Walmart's character, doesn't it? nt

[Mister Ed]

23. Buh-bye!

Hmmm...maybe if we enacted a national living wage law, Wal-Mart would pull out of the U. S.

[DeSwiss]

25. Leave Chumps. And don't let the doorknob hit you in the ass on the way out! - K&R n/t

[Live and Learn]

26. One more reason to raise it. nt

[railsback]

27. WalMart, threatening to raise the quality of life if they don't get their way

Nice.

[Coyotl]

30. Good reason to do so! BOYCOTT Wal*Mart! Support your local unions!

[Alamuti Lotus]

31. Nice! They'd rather forego the profits of a new store than allow one bad example

[spooky3]

32. Call their bluff. They stand to make a TON of money in the DC stores.

Wal-Mart would actually probably do better economically if they paid higher wages -- just ask Costco.

I hope the DC council and the mayor stand firm, but I don't think they will. I predict some sort of compromise, such as a $10 "living wage."

I don't know how anyone could consider even the $12.50 wage a living wage in such an expensive city, particularly not with the poor benefits WM offers.

[yourout]

33. Good....Costcos would be better anyways.

[ZRT2209]

34. yea! we have found the key to getting rid of WalMart! And it's a lot easier

than fighting them in front of local zoning boards!

Just pass living wage law and WalMart will run screaming like a demon from holy water.

[airplaneman]

35. Yes please make my day.

I would go for $15 minimum wage nationally. Things will get better without WalMart so I hope they don't cave and WalMart goes. Good middens - maybe it will set an example nationally.
-Airplane

[Trajan]

36. Hell ... Most communities I have lived in fought like hell to keep them out ...

Portland Oregon has largely succeeded (although one or two 'neighborhood markets' snuck under the radar) ...

We welcome this move, O'Sam and family .... Please go away ....

[Gore1FL]

37. Sounds like a win-win.

[SoapBox]

38. Good!

...get the hell out of America.

[Nevernose]

39. I'm sure some retailer will be happy to take their place

There are plenty of businesses willing to pay a little more to their employees in order to make a lot more from their customers.

[Samantha]

40. I would like to see a Costco go in and take the space

That would really make a statement, wouldn't it?

Sam

[SnakeEyes]

41. I've got no problem with a living wage

I can afford to pay higher prices. But something will need to be done to make sure the poor can afford things too.

[politicat]

43. Dear DC: hold your position. Too many other towns learned painfully that WM kills towns.

[ReRe]

44. I'd say demand a wage of at least $22/hr., plus insurance, 40 hrs week, no part-time, vacation, ...

... sick days with pay, childcare, maternity leave....

Ba-Bye, Walmart. Don't let the door hit ya, etc....

[Posteritatis]

45. The best part is that that'd make it easier for DC to implement one.

What? The retail chain whose presence drives wages down even in other businesses will leave if DC tries to increase wages?

No! Anything but the briar patch!

[TheMadMonk]

48. Buy CostCO. /nt

[ctsnowman]

49. K & R

Wal-Mart can go to heck.

[Brigid]

85. Is that next door to the ninth circle of hell?

[DinahMoeHum]

51. Bye-bye, WalMart. "Buy Buy" Costco.

Maybe Costco could step into the breach?

[lupine25]

73. I work for Costco....

...at their home office in Issaquah, WA (technical support). Last year we opened our first Costco location within the District of Columbia and so far people love it. I had to smile when, on opening day, Joe Biden showed up to reactivate his Costco membership. Haha! As far as I'm concerned (and this is my personal view, not that of the company) Wal-Mart hating the "living wage" deal in DC is adding even more icing to the best tasting cake in America right now.

[DinahMoeHum]

90. Nice of you to share this with us. Welcome to DU. . .

. . .and as I like to say on a topic like this: "Don't just boycott, 'Buy-cott'"

IOW. don't just refuse to buy at places like WalMart. Take your business elsewhere, such as Costco.

[wordpix]

52. good riddance, we don't need MalWart in DC

[dballance]

53. Like that's a bad thing? /nt

[On the Road]

56. $12.50 is a Good Target for the Minumum Wage

However, this shows the danger of states raising the minimum too much on their own, especially if the population is close to a border.

[SwankyXomb]

58. Did WalMart get their usual deal

of not having to pay any local property or sales taxes?

[handmade34]

63. they said no...

but...??

"Wal-Mart was not accepting any tax incentives, even though some of our projects qualified for government assistance"

http://www.washingtonpost.com/opinions/wal-mart-in-wage-law-vote-the-dc-council-has-forced-our-hand/2013/07/09/dee907d4-e8c5-11e2-8f22-de4bd2a2bd39_story.html

[Doctor_J]

59. Good riddance

the corporation has done irreparable damage to the US

[hack89]

61. It was stupid to tailor a law just for Walmart

why not do away with the building size requirement and make fast food chains pay a decent wage? McDonalds is a billion dollar corporation.

[lolly]

98. Eh. Turnabout is fair play.

Walmart has been the beneficiary of countless special tax abatements and tax holiday legislation.

Before the world started getting outraged at them, that was their standard modus operandi--get all kinds of tax freebies, open up a giant store and undercut the prices in all the local and small chain stores that were there (and were paying full value of their taxes) until all the other stores went out of business.

Then they could jack up prices and lower wages, because there would be nowhere else to shop or work.

[hack89]

102. So show me the winners in this particular episode

The people that live there get nothing out of it.

[on point]

64. Great! See you. This will save city money

[handmade34]

65. "Wal-Mart Could Easily Afford to Pay 12$ an Hour"

http://occupydemocrats.com/new-study-finds-wal-mart-could-easily-afford-to-pay-12-an-hour-so-why-dont-they/

"...A new bombshell study by the UC Berkeley Center for Labor Research and Education has found that even if Wal-Mart went to pay their American workers a minimum of $12 an hour, it would cost their average consumer, at most, only $12.49 per year.

Currently, or 66% of Wal-Mart workers – about 900,000 employees – earn less than four dollars an hour, while more than 20% earn less than $9. The study also found that, in general, Wal-Mart’s hourly workers earned about 12.4% less than retail workers as a whole.

The American taxpayer that subsidizes the profits of low-wage/benefits employers like Wal-Mart through food stamps and Medicaid. Wal-Mart’s poverty wages force employees to rely on $2.66 billion in government help every year, or about $420,000 per store. In state after state, Wal-Mart employees are the top recipients of Medicaid. As many as 80 percent of workers in Wal-Mart stores use food stamps. This costs the American taxpayer about $1 billion per year!..."

[pnwmom]

66. No loss. Other better stores will rise in its place. n/t

[hack89]

104. That are not required to pay more than the minimum wage. nt

[pnwmom]

112. That will be required to pay a higher wage if the city enacts such a law. nt

[hack89]

113. Did you actually read the law?

it has provisions that exempt the vast majority of businesses.

[tofuandbeer]

68. Good riddance! There will be a lot of companies glad to have the extra business.

[hack89]

105. Business that only have to pay the minimum wage.

looks like a win for corporate America

[Laughing Mirror]

69. My heart sunk when I heard that horrible inhumane operation was setting up shop in my hometown DC

And now my heart is rising at the prospect that this might not be happening after all.

Personal note to Yvette Alexander and Mayor Gray: Better options are available for Ward 7 than two Wal-Marts, as you will one day realize.

[Saviolo]

72. Any discussion on major corporations

should include a link to this great DU post by xchrom:

http://www.democraticunderground.com/10023214838

[reflection]

74. Bye bye moochers!

[Hestia]

78. Yeah, their wages have worked out so well for Arkansans.

You can also thank Walmart for the term "death tax" for inheritance taxes.

[Brigid]

80. Buh bye, Wal-Mart!

[KamaAina]

84. Hey Sprawl-Mart, if you're lurking, San Jose raised its minimum wage, too.

So I guess that means you'll be closing your two Stuporcenters, two "neighborhood markets", and one garden-variety store here, right?

[hack89]

106. Did they raise it for every company or just Walmart? nt

[KamaAina]

108. Every company

Jack in the Box is still here, too, despite their empty threats.

So you're saying that Sprawl-Mart is standing on principle at being singled out (sort of; the wage would apply to other big-box retailers such as Target and Costco), rather than just being cheap?

[hack89]

109. No - I am saying that every company needs to pay a living wage

I don't see the point of singling out a handful of companies.

Walmart has no principles. It is the judgement of the DC council that has me scratching my head.

[KamaAina]

111. Correct.

I pointed out that this might send workers fleeing mom-and-pops in droves for big-box jobs that paid 50% more.

Better to raise the wage to $10/hr. across the board.

[markpkessinger]

86. D.C. should take a lesson from NYC . . .

. . . we have so far (knock on wood) successfully resisted every attempt by Walmart to open a store in the five boroughs of NYC!

[distantearlywarning]

87. That's a feature, not a bug!

Walmart is a parasite on America. If I were a decision-maker in this scenario, I'd say "good-bye and good riddance!"

[muntrv]

91. Hey WalFart! Don't let the door hit ya where the good lord split ya!

[AAO]

92. F wallfucks

[revmclaren]

94. Everyone wave bye bye to China-Mart...

And say hello to at least 10 small local businesses that will gladly take its place. Hope that this will be a spreading trend.

[Catherina]

95. Good. Leave already. n/t

[4lbs]

97. Well, OK then, let's do the living wage in every city in America and watch what Fail-Mart does

in response to that!

[hack89]

107. As long as every company has to pay that wage

I suspect that Walmart will do just fine (unfortunately).

[blkmusclmachine]

100. Bye!

[closeupready]

110. Okay, someone help me - what's the downside here...?

K&R